This archive report was first published on 6 October 2021.
Barcelona's financial crisis deepened in March 2021, when the club was 'technically bankrupt', according to CEO Ferran Reverter. The Spanish giant's financial woes were laid bare in August when they were forced to allow Lionel Messi to join Paris Saint-Germain after admitting they could no longer afford to keep the six-time world player of the year.
Reverter revealed during a news conference that the club had inherited debts of 1.35 billion euros ($1.56 billion) and a bloated first-team payroll when Joan Laporta took over as president in March. The new board had to take out a temporary loan of 80 million euros ($92 million) to cover the treasury obligations for a period of 90 days.
Barcelona have confirmed losses of 481 million euros for last season, which was even higher than the club anticipated. The audit, which studied the club's finances from 2018/19 until March 2021, showed there had been 'serious administrative deficiencies' and that directors 'bought players by being disconnected from reality', Reverter said.
The club's wage bill soared by 61 percent between 2016 and 2020, rising from 471 million euros to 759 million euros. The total has since been slashed by 155 million by the new management.
